We have an update on the situation at 201 East Broadway, where construction of a seven story residential building yesterday damaged a neighboring building.

Here’s what we’ve been told this afternoon by a spokesperson for the Department of Buildings (DOB). City inspectors reported to the work site yesterday afternoon after excavation for the new building caused structural stability issues with the foundation of a four story tenement just to the east of the construction site.

DOB engineers concluded that the tenement, 205 East Broadway, was not in immediate danger of collapse. A full stop work order was placed on 201 East Broadway, the development site, and a full vacate order was imposed on 205 East Broadway, the neighboring building. The American Red Cross offered all of the residents relocation assistance, but they chose to make their own arrangements.

As we indicated this morning, the stop work order was partially rescinded so that the owners of both properties could bring contractors in for emergency stabilization repairs. The owner of 201 East Broadway may face fines and enforcement actions from the city, but no decisions have been made as of yet.

Developer Daniel Wise purchased the property for $8.5 million and is in the process of building modular apartments on the site. He has not responded to our request for comment about yesterday’s mishap. 205 East Broadway is an HDFC (Housing Development Fund Company) cooperative purchased by residents from the city in 1981, according to public records.